May 24 (Reuters) - Canadian oil and natural gas producerNiko Resources Ltd said on Friday it made a significantgas discovery, along with its partners, in the KG-D6 block offIndia's east coast, sending its shares up 26 percent.
Niko, which partners India's Reliance Industries Ltd and BP Plc, said the discovery is expected toadd to the gas resources in the block, without revealingpotential reserves.
"Formation evaluation indicates a gross gas and condensatecolumn in the well of about 155 meters in the Mesozoicreservoirs," the companies said in a statement.
The discovery, named D-55, comes at a time when thecompanies had been grappling with declining output at the block.
"We shall embark on the appraisal program in the next fewmonths in order to evaluate the options for developing thisdiscovery," PMS Prasad, executive director at RelianceIndustries, said in a statement.
A Reliance Industries spokesman declined to give furtherdetails when contacted by Reuters.
Reliance is the operator of the block with a 60 percentstake. BP holds 30 percent and Niko the rest.
Niko shares were up 21 percent at $7.26 at midday. They roseto a high of C$7.54 early on the Toronto Stock Exchange onFriday. (Reporting by Bhaswati Mukhopadhyay in Bangalore and PrashantMehra in Mumbai; Editing by Sriraj Kalluvila)
BP (BP.)
